The Hidden Cost of Third-Party Delivery Apps

The Hidden Cost of Third-Party Delivery Apps

Author

Taylor Brewster

man riding motorcycle on road during daytime
man riding motorcycle on road during daytime

Are delivery apps taking more than just 30%? We break down the hidden fees, marketing costs, and data loss that eat into your restaurant's margins.

For years, third-party delivery apps like UberEats, DoorDash, and Grubhub have been hailed as the saviors of the modern restaurant industry. "They bring you customers you wouldn't otherwise get," the sales reps promise. But when you look closely at your monthly statements, the math often tells a different story.

Most restaurant owners are painfully aware of the headline commission rate—usually hovering between 15% and 30%. If you sell a $20 burger, the app keeps $6 immediately. But that visible fee is just the tip of the iceberg.

The "Invisible" Fees You Might Be Missing

Beyond the standard commission, there is a web of hidden costs that slowly bleed your profitability:

  • Activation & Tablet Fees: Many platforms charge setup fees or monthly rentals for their hardware.

  • Marketing "Boosts": To appear at the top of the list, you often have to pay for sponsored placement, adding another 10-15% to your cost per order.

  • Refunds & Errors: When a driver forgets a drink or delivers a cold meal, the app often refunds the customer instantly—out of your pocket—without giving you a chance to dispute it.

The Cost of Disconnection

Perhaps the biggest cost isn't financial, but strategic. When a customer orders through an app, they aren't your customer; they are the app's user. You don't get their email, their dining history, or the ability to market to them directly. You are effectively renting access to your own patrons.

It’s Time to Audit Your P&L

Take a hard look at your profit and loss statement this month. If your delivery volume is high but your bank account isn't growing, you are likely falling victim to the real cost of 3rd party apps. The convenience they offer comes at a premium that most independent restaurants simply cannot sustain in the long run.

Read More: Why Restaurants are Ditching Third-Party Apps in 2025

Book Your Free Demo Now!

See how Town can grow your business without long-term commitments or complex systems. Start scaling today!

Get a Demo